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According to a recent market research report published by Transparency Market Research, the global luxury goods market is estimated to expand at a CAGR of 3.4% between 2014 and 2020. The report, titled “Global Luxury Goods Market – Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2014 – 2020,” projects the global luxury goods market to reach US$374.85 bn by the end of 2020. The market stood at a US$296.1 bn in 2013.

The global luxury goods market offers a mix of both affordable and premium luxury goods. A rise in disposable incomes and increase in the number of high net worth individuals (HNIs) has propelled the demand for luxury goods. However, the growth of the market is dependent on various micro- and macro-economic factors such as currency devaluation.

The global luxury goods market is witnessing an increase in promotion of luxury products through various digital platforms. The market players are trying to tailor their offerings as per the cultural leanings of consumers across various regions.Depending on the product type, the report segments the global luxury goods market into apparel and leather goods, luxury watches and jewelry, wines/champagne and spirits, luxury personal care and cosmetics, fragrances, and others, including luxury pens and tableware.

In terms of revenue, the apparel and leather goods segment was the largest in 2013 and is expected to lead the market during the forecast period. The expanding travel retail is expected to boost the sales of products in the fragrances segment. In Latin America and Asia, higher demand for wines/champagne and spirits is anticipated owing to the proliferation of pubs and bars.

The report studies the luxury goods market across four key regions: Asia Pacific, North America, Europe, and Rest of the World. Europe was the leading luxury goods market in 2013, followed by North America. Factors such as profusion of duty-free shops and massive travel retail network propelled the growth of the Europe luxury goods market.

It has been observed that the per capita expenditure on capital goods in this region is declining considerably. This can be attributed to the economic crisis in the Eurozone. Consumers in North America are anticipated to continue spending money on absolute luxury goods during the forecast horizon. In the near future, Asia Pacific and Rest of the World are projected to register a significant growth in the luxury goods market owing to the growing awareness about the major fashion brands and the rise in disposable incomes. However, the lack of distribution channels and outlets in the emerging economies will restrict market growth.